WKÖ Industry Radar: One in Four Companies Plans to Relocate

Reasons for a Possible Relocation

WKÖ Economic Policy pointed out that the location decisions of industry will continue to depend heavily on political framework conditions in the future. A competitive energy policy and targeted investment incentives are crucial to counter tendencies toward relocation.

Jochen Danninger, responsible for industrial policy at the Chamber of Commerce, stressed that the current survey must be understood as a warning signal. The key is to set the right course now in order to secure industrial value creation in Austria.

In light of the results, the WKÖ advocates tax relief, faster approval procedures, and an active industrial policy. Diversification of sales markets and stronger European cooperation are also cited as possible responses.

Demands on Policymakers

The Industry Radar regularly surveys domestic industrial companies on their location assessments and investment plans. The most recent evaluation is based on responses from companies of various sizes and sectors.

International competition, particularly through cheaper production conditions in countries such as China, is putting additional pressure on the domestic location, according to the Chamber of Commerce. A relocation of production back to the home country, so-called reshoring, is only being considered in isolated cases.

The Chamber of Commerce announced that it will bring the survey results into discussions with the federal government and the European Commission. The aim is to initiate concrete measures to strengthen Austria as an industrial location.

International Competitive Pressure

Industry representatives expressed concern about the signal effect of the figures. If one in four companies is considering a change of location, there is a risk that value chains will be permanently relocated abroad.

At the same time, the WKÖ emphasized that many companies continue to rely on Austria as a location. It is crucial that policymakers and businesses work together on framework conditions that increase planning security and competitiveness.

For the coming months, the Chamber of Commerce plans further analyses to closely monitor the development of location decisions in domestic industry and, if necessary, formulate policy recommendations.